Since the contract will be drafted under a common law framework, <u>it will be based on tradition, precedent, and custom.</u>
<h3>What is a common law contract?</h3>
Contracts drafted under a common law system give judges the opportunity to interpret disputes using the prevailing situations. A common law system adjudicates cases based on judicial precedent. Judicial precedents are established through case law.
Thus, common law contract cases <u>will be based on tradition, precedent, and custom.</u>
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Answer: continuance commitment
Explanation: In simple words, continuance commitment refers to the situation when an individual working as an employee in an organisation does not want to leave it due to the costs involved in taking the decision.
In the given case, Maddie is going to retire in five years, if she leaves now she will loose the retirement benefits also the uncertainty regarding the new project is high leading to heavy opportunity costs.
Answer:
Normal:
$ 3,509.7470
$ 563.7093
$ 2,000.00
Due:
$3,930.9167
$ 597.5319
$ 2,000.00
Explanation:
We solve using the formula for common annuity and annuity-due on each case:
(annuity-due)
<u>First:</u>
C 200.00
time 10
rate 0.12
Normal: $3,509.7470
Due: $3,930.9167
<u>Second:</u>
$563.7093
$597.5319
<u>Third:</u>
No interest so no time value of money the future value is the same as the sum of the receipts regardless of time or being paid at the beginning or ending.
1,000 + 1,000 = 2,000
Answer:
The required rate of return on the risky projects is 17.40%
Explanation:
The required rate of return on average risky projects of Frank and Sons can be computed using the cost of equity formula below:
Ke=Rf+beta*(Mr-Rf)
Rf is the risk rate of return on government security which is 7%
beta is the sensitivity of the project to market return is 1.3
Mr is the market expected return which is 15%
Ke=7%+1.3*(15%-7%)
Ke=7%+1.3*8%
Ke=7%+10.4%
Ke=17.40%
The required rate of return on the risky projects is 17.40%
